Abu Dhabi Investment-Backed Aerospace and Defence Company Bags Order Worth Rs 305 Crore from Larsen and Toubro – FIIs Increase Stake from 0.13 Per cent to 2.97 Per cent
The company’s shares have delivered an impressive return of around 80 per cent in the past 6 months only.
This Small-Cap defence company is engaged in the design, development, manufacturing, and testing of defence and space engineering products and solutions. The company operates across four major segments: Defence & Space Optics, Defence Electronics, Heavy Engineering, and Electromagnetic Pulse Protection Solutions.
Controp-Paras Technologies Private Limited, an associate company of Paras Defence and Space Technologies, has secured an order valued at approximately Rs 305 crore (excluding taxes) from Larsen and Toubro Limited (L&T). The order entails the manufacturing and supply of 244 units of the Sight-25HD Electro-Optics (EO) System, which includes extended warranty charges and an Integrated Logistics Support (ILS) package for L&T's Close-In Weapon System (CIWS) program. The execution of the order is expected to be completed within 47 months.
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Today, the shares of Paras Defence and Space Technologies rallied around 5 per cent hit an intraday high of Rs 1119 each, and finally closed around Rs 1105.80 per share on the BSE. The company’s current market capitalization stands at Rs 4312.32 crore. Additionally, the company’s shares have delivered a return of around 80 per cent in the past 6 months only.
As per the Quarterly Results, in the Q1 FY25, Paras Defence and Space Technologies recorded a revenue of Rs 84 crore compared to Rs 48 crore. The operating profit stood at Rs 24 crore with an operating profit margin of 29 per cent. The net profit stood at Rs 14 crore compared to a profit of Rs 6 crore. Looking at the annual performance, the company generated a revenue of Rs 254 crore in FY24. The operating profit for FY24 was Rs 51 crore with a net profit of Rs 30 crore compared to a net profit of Rs 36 crore in FY23.
According to the company’s shareholding pattern, promoters hold 58.94 per cent, the public holds 38 per cent, and FIIs have increased their stake from 0.13 per cent to 2.97 per cent. Meanwhile, DIIs' stake stood at 0.07 per cent, down from 2.75 per cent in the June quarter.
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Disclaimer: The article is for informational purposes only and not investment advice.